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10. Which of the following methods of project analysis are biased towards short-term a) profitability index and internal rate of return b) net present value
10. Which of the following methods of project analysis are biased towards short-term a) profitability index and internal rate of return b) net present value and profitability index c) net present value and internal rate of return d) regular payback period and discounted payback period 11. It is important to identify and use only incremental cash flows in capital budgeting a) because ultimately it is the change in a firm's overall future cash flows that matte b) because they are the simplest to identify c) only when the stand-alone principle fails to hold. d) to accommodate unforeseen changes that might occur. 12. The (regular) internal rate of return (IRR) is defined as the a) rate of return a project will generate if the project is financed solely with internal fun b) rate of return a project will generate if the project is financed solely with external fun c) discount rate which causes the net present value (NPV) of a project to equal zero d) discount rate which causes the profitability index (PI) for a project to equal zero 13. A project will have more than one internal rate of return (IRR) if a) the IRR is positive b) the IRR is negative c) the NPV is zero d) the cash flow pattern exhibits more than one sign change 4. Which of tho fl
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